Ok, so the cases are these, depending on how you define your system:
1)If the water is defined as the system, throughout the problem, then the internal energy of the water will go down, as heat will be lost from the hot body (water) to cold surroundings (ice).
2) If the water and ice are communally always considered the system then the energy does nothing, since
initial water energy + initial ice energy = final water energy + final ice energy.
In other words it is a closed system, assuming no interaction with the surroundings.
3) If the water is the initial system, and the ice & water the final system, then the internal energy will go up as you are adding to what you define to be the system.
Of these I favour taking case 1) in this simple(ish) problem.