For glaze, in a large saucepan, combine the sugar, cornstarch and gelatin. Add water and stir until smooth. Cook and stir over medium-high heat until mixture begins to boil. Cook and stir 1-2 minutes longer or until thickened. Remove from the heat; cool completely. Cut half of the strawberries into quarters; fold into glaze.
In a small bowl, beat cream cheese until smooth. Beat in milk until blended. Fold in whipped topping.
In a 4-qt. clear glass bowl, layer half of the cake cubes, glaze and cream mixture. Repeat layers. Cut remaining strawberries in half and arrange over the top. Cover and refrigerate for at least 2 hours or overnight. Yield: 12-16 servings.