a way to dry nutella?!

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As far as I know, there is no way to dry nutella. Heating it causes it to lose its flavor and have an off consistency. You could try making a nutella and nut mixture and pouring a ganage over it (unprocessed chocolate and heavy cream mixture). Maybe take a really small ice cream scoop, put the nutella and nuts in it, drop the filling and put the mixture in ganage - basically think of ferrero.

Nutella is made to be soft and spreadable, and can't be hardened (as far as I know). it has lots of oil and emulsifiers that make it creamy. your best bet is using bark chocolate (also called confectionary coating) or wilton melts. why don't you add Nutella to the cake balls instead of frosting? then you can still get that flavor without having a real mess on your hands.

There's really too much oil from the nuts in nutella to use it for that. I'd suggest using the chocolate, but rolling the balls in finely chopped hazelnuts before the chocolate completely sets up, for the flavor of nutella.