Spread the hazelnuts on a baking sheet and toast in the oven for 10 to 12 minutes, or until fragrant.
While the hazelnuts are still warm, place them in a clean kitchen towel and rub them vigorously to remove as much of the skin as possible. Some skin may remain, which is okay.
Melt the milk chocolate chips in a double boiler or in the microwave in 30-second intervals, stirring until smooth. Let it cool slightly.
In a food processor, process the skinned hazelnuts until they form a smooth paste.
Add the canola oil, powdered sugar, vanilla extract, and salt to the food processor. Process until well combined.
Add the melted chocolate to the food processor and continue to process until the mixture is smooth and creamy, resembling Nutella.
Pour the homemade Nutella into a clean jar. Let it cool completely at room temperature. It will thicken as it cools.
Once cooled, cover the jar and store in the refrigerator. Enjoy spread on toast, fruit, or as a dip!
Notes
Homemade Nutella is best enjoyed fresh, but can be stored in an airtight container in the refrigerator for up to 2 weeks.