For the cookies: Place an oven rack in the center of the oven. Preheat the oven to 350 degrees F. Line 3 baking sheets with parchment paper or silicone liners. Set aside.
In a stand mixer fitted with the paddle attachment, beat the butter and sugar on high speed until light and fluffy, 2 to 3 minutes. Beat in the vanilla. With the machine running, gradually add the flour until incorporated. Beat in the chocolate-hazelnut spread. Using a small cookie scoop or a tablespoon, drop 12 balls of dough onto each baking sheet. Bake until the bottoms of the cookies flatten out slightly, 10 to 12 minutes. Cool for 5 minutes and transfer to a wire rack to cool completely, about 30 minutes.
Place 1 cup of powdered sugar in a medium bowl. In batches, roll the cookies in the sugar until coated. Store in an airtight container at room temperature.