Bloom yeast by mixing it in the warm milk along with a teaspoon of your sugar. Set aside for about 10 minutes.
In a bowl, mix butter, sugar, egg and salt until fully combined.
Mix in yeast and milk mixture.
Add flour a little at a time and mix until fully incorporated. Transfer to a floured surface (or keep in the bowl) and knead for about 3 to 5 minutes.
Form though into a ball and place in a greased bowl. Cover and let rise for 1-2 hours or until doubled in size.
After dough has risen, turn it over unto a floured surface. Roll out dough into a rectangular shape until it is pretty flat (about 1/4 of an inch).
With a pizza cutter or knife, cut dough into rectangles (about 2 by 3 inches).
Place about .5 to 1 tsp Nutella in the middle each rectangle.
One at a time, run a wet finger around the edges of the rectangle, fold it in half and press the edges together to seal it.
Fill a deep fryer or deep pan with oil and place it on medium high heat. When the oil is hot (about 360ºF), fry your sealed beignets in batches. Be sure to not over crowd the pan.
Fry the beignets until golden brown, turning them around midway so they fry evenly on both sides.
Place them in a strainer and after excess oil has drained off, dust them very generously with powdered sugar. Enjoy while still warm.
