In a small bowl, combine strawberries and sugar; let stand for 30 minutes. Meanwhile, in a large bowl, whisk milk and pudding mix for 2 minutes. Let stand for 2 minutes or until soft-set. Fold in 1 cup whipped topping; set aside.
Cut cake into 14 slices. Layer seven cake slices with 2 tablespoons strawberries, 1/3 cup pudding mixture and another cake slice. Top with remaining strawberries and whipped topping.