Preheat the oven to 350. In a stand mixer, mix together the softened butter and sugar until well blended. Add the vanilla and the Frangelico Liqueur and mix thoroughly. Then add the eggs, one at a time until incorporated. Scrape down the bowl and mix again.
Thoroughly mix together the flour, salt, and baking powder. Add it to the liquid mixture. Once it's mixed, add the nuts and make sure they are well incorporated.
Then take the dough and separate it into two equal pieces. Roll the pieces into rolls and lay them on a cookie sheet. Then flatten each roll to about 1/2 inch thickness. They should each measure about 12 inches long and 5 inches wide.
Make an egg wash by mixing together the egg yolk, the 1/2 tsp. of sugar and the 1/2 tsp. of water. Brush it lightly on the top of the biscotti rectangles. Bake at 350 for 20. minutes.
When the biscotti are done, slide a spatula under each rectangle to loosen it from the cookie sheet. Cut each rectangle width-wise into 1 inch strips. Turn each strip on its side. Reduce the heat in the oven to 325 and bake again for another 15 minutes.
Once the biscotti are cool. Finely chop 1 1/4 cups of hazelnuts. Place them in a flat pan. Spread one side of each cookie with the Nutella and dip it into the finely chopped hazelnuts. Let them sit out to dry. The nutella doesn't harden like melted chocolate will, but if you refrigerate them, it will stiffen. Enjoy!
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