In a small saucepan combine the milk chocolate, Nutella, and heavy cream.
Cook over medium low heat, stirring occasionally, until melted.
Pour into a bowl and refrigerate until firm.
Roll the mixture into 1 inch balls and place on a cookie sheet.
Freeze for 20 minutes.
Melt the chocolate in the microwave in 30 second intervals, stirring after each time, until it is totally melted.
Remove the frozen Nutella balls, dip into the chocolate, and place on waxed paper. Immediately sprinkle with the chopped hazelnuts. Allow to sit for 20 minutes to harden.
Store in an air tight container.