Actually, while it might not quite be life, humans have done experiments that have produced results closer than you would think. Also, do you know how to breathe without being taught to do so? Of course you do, many of the processes of life are automatic reactions our bodies have to stimuli. The less intelligent the creature, the more instinct as opposed to learned information plays a role in their actions.
Water comes from the atoms produced by the Big Bang as well as stars.
Life started out small, it is illogical to think that we would spawn a multicellular being like that. The first life was unicellular. Everything just happened mostly by chance and somewhat because of biological opportunity.