Heat a pan on high and place the hazelnuts in, cook while moving them around constantly for 8 to 10 minutes. They are dome when you notice some of the skin is coming off them, and they start to turn golden brown.

Remove from the heat and transfer them onto a clean kitchen tea towel.

Gently rub them together with the towel until most of the skin comes off. You might need a bit of help with a knife to get most or all of the skin off of the hazelnuts. 

Place hazelnuts food processor (or Vitamix) and mix until it starts to liquify and look like butter. Scrape the sides as needed to make sure you get all of the nuts. 

Add in the powdered sugar, cocoa powder, vanilla, and coconut oil and mix until combined.

Place the chocolate into a microwave-safe bowl and melt the chocolate in the microwave. Cook at 20 second intervals until completely melted. Make sure you don't burn the chocolate. 

Pour the chocolate into your hazelnut mixture and continue mixing until it is evenly and well combined. 

Use a strainer with small holes or cheesecloth to strain the Nutella mixture into a small bowl. I recommend straining it with a strainer and then with a cheesecloth. This gives a smooth Nutella. 

Spread into a clean jar and let it cool completely. Store in the refrigerator for up to 2-3 weeks.

Enjoy!