Lay hazelnuts on baking sheets and bake in oven at 400 degrees for about 7-10 minutes. Watch closely because you do not want them to burn. They should expand a little and the skins will start to pull away a little from the hazelnut.
Remove from oven and let cool until able to handle. Pour hazelnuts into damp kitchen towel and rub hazelnuts vigorously so the skins come off. It is ok if every skin does not come off, just try to get as much off as you can.
Pour hazelnuts into food processor and blend until becomes smooth and creamy. This part can take a little while (about 5 minutes) It starts off dry and then turns cakey, but keep processing and it will eventually become smooth and the texture of nut butter <--because that is what this is at this point.
Once desired texture is reached, add other ingredients and continue pulsing until combined.
Taste to see if you want added sweetness, vanilla, etc. If flavor is to your liking scrape spread into airtight container and store for up to 1 week. It might last longer but I don't recommend it.
Recipe by Peppers and Peaches at https://www.peppersandpeaches.com/healthy-chocolate-hazelnut-spread-nutella/