Preheat your oven to 350°F (175°C). Line two baking sheets with parchment paper.

Cream the butter and powdered sugar together in a large bowl until light and fluffy, about 3 minutes.

Add the Nutella and vanilla extract to the creamed mixture and stir until smooth.

Whisk together the flour, chopped hazelnuts, and salt in a separate bowl. Gradually combine with the wet ingredients.

Scoop rounded balls of dough onto the prepared baking sheets, leaving space between each ball.

Bake for 10-12 minutes until the edges are golden and centers are soft. Cool slightly before rolling in powdered sugar.