Bake 1/2 cup chopped hazelnuts in a shallow pan at 350° for 5 to 10 minutes or until toasted. Set aside.
Beat chocolate-hazelnut spread and shortening at medium speed with an electric mixer until blended. Gradually add sugar, beating well. Add eggs and vanilla; beat until blended.
Combine flour, baking powder, and salt; add to chocolate-hazelnut mixture alternately with milk, beginning and ending with flour mixture. Stir in toasted hazelnuts.
Shape dough into 1-inch balls; roll in finely chopped hazelnuts, and then in powdered sugar. Place 2 inches apart on lightly greased baking sheets.
Bake at 375° for 8 to 10 minutes or until set. Remove to wire racks to cool.