Mix pudding and milk according to package directions. Refrigerate until thickened.
Add sherry; blend well and refrigerate.
Whip cream with sugar and vanilla until it stands in soft peaks (don't let it get too stiff).
Using a serrated knife, slice cake horizontally in 1/2-inch thick slices. Pour half the pudding into a glass souffl? dish or serving dish. Cover with a layer of cake slices, piercing them together to fit. Cover cake with half the whipped cream. Repeat with pudding, cake and whipped cream. Cover and refrigerate.Makes 6 to 8 Source: