Heat milk for 35-40 seconds in the microwave or until warm (100 degrees)
In a small bowl, stir together yeast, 1 teaspoon sugar, 1 tablespoon warm milk.
Let the yeast mixture sit for 4-5 minutes or until the mixture becomes foamy.
Using a stand mixer with the dough hook attachment, place flour, butter, eggs, salt, remaining milk and sugar, and yeast mixture into the mixer bowl.
With speed on medium, knead dough until a ball forms. Add additional flour, 1 tablespoon at a time, if needed.
Once the dough ball is formed, transfer to a lightly oiled mixing bowl, cover with a clean kitchen towel, and let rise in a warm place for about 1 hour or until the dough has doubled in size.
Once dough has risen, transfer onto a floured surface and shape into a rectangle.
Using a rolling pin, roll dough out into a large rectangle, about ¼ inch thick.
Spread Nutella over dough, covering completely.
Sprinkle walnuts evenly on top of Nutella.
Roll dough into a log shape and pinch together the end to create a seam and seal the dough log.
Slice into 8-10 rolls using a very sharp knife or thread.
Place rolls into a greased 9x13 baking dish and cover with kitchen towel. Set in a warm place until doubled in size, about 30-40 minutes.
Heat oven to 350 degrees.
Once rolls have risen, bake for 24-26 minutes or until golden brown.
In a small bowl, whisk together powdered sugar, milk, and vanilla until smooth and clumps are gone.
Drizzle icing over rolls immediately after removing them from the oven.