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In a large mixing bowl, stir together 1 1/4 cups flour and yeast. In a medium saucepan, heat and stir milk, 1/3 cup sugar, 1/4 cup butter and salt just until warm (120°F to 130°F) and butter almost melts. Add milk mixture to flour mixture; add egg. Beat with an electric mixer on low to medium speed for 30 seconds, scraping sides of bowl constantly. Beat on high speed for 3 minutes. Using a wooden spoon, stir in as much of the remaining flour as you can.
Turn dough out onto a lightly floured surface. Knead in enough of the remaining flour to make a moderately soft dough that is smooth and elastic (3 to 5 minutes total). Shape dough into a ball. Place in a lightly greased bowl, turning once to grease surface of dough. Cover and let rise in a warm place until double in size (45 to 60 minutes).
Punch dough down. Turn out onto a lightly floured surface. Cover and let rest for 10 minutes. Meanwhile, lightly grease a 13x9x2-inch baking pan; set aside. Melt the remaining 1/4 butter. In a small bowl, combine 1/2 cup chocolate-hazelnut spread and the melted butter. In another small bowl, combine the remaining 1/3 cup sugar and cinnamon.
Roll dough into a 15x10-inch rectangle. Spread chocolate-hazelnut mixture evenly over dough, leaving about 1/2 inch unfilled along the long sides. Sprinkle with cinnamon-sugar. Roll up rectangle, starting from a filled long side; pinch dough to seal seam. Cut into 12 slices. Arrange slices in the prepared baking pan. Cover and let rise in a warm place until nearly double in size (about 30 minutes).
Preheat oven to 375°F. Bake about 25 minutes or until golden. Cool in pan on wire rack for 10 minutes; remove from pan.
For icing, in a small bowl combine the remaining 1/2 cup chocolate-hazelnut spread and 1/3 cup whipping cream. If necessary, stir in additional whipping cream, a small amount at a time, to reach drizzling consistency. Drizzle rolls with icing and sprinkle with hazelnuts. Serve warm.