MAKING WAY: When the vessels cut through the water and vessel is in control by helm.
If engine is just stopped and she still making wake and cut through water then she is making way.
UNDERWAY: The water is taking ship from one place to another When she is not at anchor, or made fast to shore, or aground.
If current 5 knots / Drifting with a tide from head and ship is stopped.
She is Underway.
If current is 5 Knots from stern and she is going astern with dead astern.
She is Making way.