Arrange hazelnuts on a rimmed baking sheet and roast for 10-15 minutes until lightly browned.
In a medium saucepan, combine whole milk, powdered milk, honey, and salt. Heat over medium-low heat until just boiling. Remove from heat.
Melt chocolate in a double boiler or microwave on half-power for about 2-3 minutes, stirring several times throughout.
Remove hazelnuts from oven and spread them out on a clean tea towel. Wrap the hazelnuts in the towel and rub them for a few minutes to remove as much of the skin as possible. (They do not need to be perfectly clean, just do the best you can. Mine still had some skin remnants on them and that's why my Homemade Nutella has a speckled appearance.)
In a food processor, blend the warm hazelnuts on high speed for several minutes until very smooth and a paste forms. This can take a while. You'll need to scrape down the sides of the bowl a few times throughout the process. After several minutes, the oils in the hazelnuts will be release, and soon you'll have a nice, smooth paste.
Add melted chocolate to the food processor and blend until well combined.
Carefully pour in warm milk mixture and blend again until all ingredients are incorporated and mixture is smooth.
Pour into jars and let cool before sealing with lids and refrigerating. The Nutella will thicken as it cools.
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