Make the custard by whisking together milk, heavy cream, egg, and vanilla extract in a medium bowl. Set aside.
Prepare the bread slices by cutting off the crusts and flattening each slice with a rolling pin until thin.
Spread Nutella evenly over each flattened bread slice and roll up tightly, pinching the seam to seal.
Heat 2 tablespoons of butter in a frying pan over medium heat. Dip each roll-up in the custard mixture and cook in the pan until golden brown, about 2 minutes per side. Repeat in batches, adding remaining butter as needed.
Roll the cooked French toast roll-ups in vanilla sugar until coated, or dust with powdered sugar if vanilla sugar is unavailable. Serve immediately.
Notes
Feel free to customize the filling by adding sliced strawberries or bananas inside the roll-ups before rolling. Enjoy warm for best taste!