Combine wafer crumbs, butter and 2 Tbsp. sugar; press onto bottom of 13x9-inch dish. Refrigerate until ready to use.
Beat cream cheese, remaining sugar and 2 Tbsp. milk in medium bowl until blended. Stir in finely crushed candy canes. Add 1-1/4 cups COOL WHIP; mix well. Spread over crust.
Beat pudding mixes and remaining milk with whisk 2 min.; pour over cream cheese layer. Let stand 5 min. or until thickened. Cover with remaining COOL WHIP.
Refrigerate 4 hours. Top with coarsely crushed candy canes just before serving.