(Borrowed)http://www.frugalsquirrels.com/vb/showthread.php?t=267752
Homemade Nutella Recipe
•2 cups chopped hazelnuts (filberts)
•3/4 cup to 1 cup powdered sugar
•1/4 cup unsweetened dark cocoa powder (such as Hershey's Extra Dark cocoa)
•1/8 to 1/4 cup canola oil
Place hazelnuts in the work bowl of a food processor fitted with a metal blade. Process until nuts start to clump together in a ball. This will take some time (about five minutes), so be patient. Add the powdered sugar and cocoa powder and process again for 2 to 3 minutes, until the mixture turns dark and the ingredients are well combined. Now, slowly drizzle in enough oil to make a spread.

Store in an airtight container in the refrigerator for 4 to 6 weeks.

Makes approximately two cups of nutella (16 servings).

Per serving: 147 calories, 12 g fat (1 g saturated fat), 0 mg cholesterol, 9 g carbohydrate, 2 g fiber, 2 g protein, 0% vitamin A, 2% vitamin C, 2% calcium, 6% iron



Chocolate-Hazelnut Spread (easy version)

Yield: about 12 ounces (1 1/2 cups)

2 cups whole raw hazelnuts
1 cup powdered sugar
1/4 cup unsweetened cocoa powder
up to 1/4 cup vegetable or nut oil
1/2 tsp vanilla extract

1.Preheat oven to 350 degrees F. Place hazelnuts in a single layer on a shallow baking pan. Toast until the skins are almost black and the meat is dark brown, about 15 minutes. Stir the nuts halfway through baking to ensure an even color.
2.Since the skin is bitter, you’ll want to discard them. Wrap the cooled hazelnuts in a clean kitchen towel or paper towel, and rub until most of the skins have come off. Don’t fret if you can’t get off all the skins.
3.Process nuts in a food processor, scraping down the sides of the bowl occasionally, until they have liquefied, about 5 minutes. First, you will get coarsely chopped nuts, then a fine meal. After a little while, the nuts will form a ball around the blade, and it will seem like you only have a solid mass. Keep processing. The heat and friction will extract the natural oils, and you will get hazelnut butter!
4.When the nuts are liquified, add in the sugar, cocoa and vanilla. Slowly drizzle in enough oil to make a spreadable consistency. Since the mixture is warm, it will be more fluid now than at room temperature.
5.Transfer the spread to an airtight container, and store in the refrigerator for 1-2 months. For best results, stir the -hazelnut spread before using.
Chocolate-Hazelnut Spread (caramel base)

Caramel instructions adapted from Chocolate and the Art of Low-Fat Desserts by Alice Medrich

Yield: about 12 ounces (1 1/2 cups)

1/2 cup sugar
1/4 cup water
2 cups whole raw hazelnuts
1/4 cup unsweetened cocoa powder
1/2 tsp vanilla extract
1/8 tsp salt

1.Preparation: Line a baking sheet with foil. Preheat oven to 350 degrees F.
2.Make the caramel: Combine the sugar and water in a 3- to 4-cup saucepan. To prevent crystallization, don’t stir it again during the cooking. Cover and bring the mixture to a simmer over medium heat. Remove the lid and wipe down the sides of the pan with a wet pastry brush or a scrunched up paper towel dipped in water. Cover and cook for 2 minutes, or until the sugar’s completely dissolved. Uncover and cook until the syrup looks like pale amber maple syrup. If your pan’s dark and you can’t gauge the color of the syrup, spoon a drop or two onto a white saucer. Swirl the pan gently, continuing to cook and test the color until the syrup turns medium amber.
3.Immediately pour the caramel onto the lined baking sheet. Tilt the sheet to spread the caramel as thinly as possible. Let harden completely, about 15 minutes.
4.Toast the nuts: Meanwhile, place the hazelnuts in a single layer on a baking sheet. Toast in the oven until the skins are almost black and the meat is dark brown, about 15 minutes. Stir the nuts halfway through baking to ensure an even color.
5.To get rid of the bitter skins, wrap the cooled hazelnuts in a clean kitchen towel or paper towel. Rub until most of the skins come off, but don’t worry if some remain.
6.Make the nut butter: When the caramel is completely cool, break it into small pieces and pulverize in a food processor. Try to get the caramel as fine as possible at this stage (it won’t get finer once you add the nuts).
7.Add the nuts and process until they have liquefied, about 5 minutes. Scrape down the sides of the bowl occasionally. Be patient; the nuts will go from a fine meal, to forming a ball around the blade, to nut butter. Add the cocoa, vanilla and salt and process until smooth.
8.Transfer the spread to an airtight container, and store in the refrigerator for1-2 months. For best results, stir the -hazelnut spread before using.
Notes:

•Please use whole raw nuts, and toast them yourself to intensify the flavor. Pre-toasted or pre-chopped nuts are often spoiled.
•To further intensify the nut flavor, use unrefined nut oil (for version 1), which is tan in color. Refined nut oils have the color and flavor removed. Peanut oil is especially cheap in Chinese supermarkets. I bought 20 ounces for $2.38! There’s a lesson: if you’re looking for a “gourmet” ingredient, try an ethnic market.
•To make any standard nut butter, use this procedure but omit the powdered sugar, cocoa, vanilla and extra oil. Add 1/2 tsp salt and 2 tbsp granulated sugar. Try making your own cashew butter: you may never go back to peanut butter again!

A selection of over 80 recipes to use nutella in.
http://www.recipegoldmine.com/nutella/nutella.html