Preheat the oven to 325 degrees F (165 degrees C). Grease and flour a fluted tube pan (such as Bundt(R)).
Combine sugar, butter, and shortening in the bowl of a stand mixer fitted with the paddle attachment. Beat until light yellow in color. Add eggs one at a time, mixing in each completely before adding the next. Mix in 1/3 of the flour, then 1/2 of the milk and water. Repeat with remaining flour, milk, and water, mixing completely between each addition. Add vanilla extract. Mix for 1 minute more.
Pour batter into the prepared tube pan.
Bake in the preheated oven until a toothpick inserted into the center comes out clean, about 1 1/2 hours. Cool in the pan for 10 minutes. Invert onto a wire rack.
