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Line a baking sheet with parchment paper or a silicone mat. Scoop sixteen 1/3 - 1/2 teaspoon sized balls of Nutella and place them on the baking sheet. Place baking sheet in the freezer for 30 minutes.
Meanwhile, line another large (or two medium) baking sheet with parchment paper or a silicone mat. Set aside.
In a stand mixer or using your hand mixer, cream butter, and sugar together, until light and fluffy - about 3-4 minutes. Add vanilla and slowly add flour and mix until just combined. Fold in chopped pecans. beating at low speed, scraping bowl as necessary, until well mixed.
Scoop out ONE tablespoon sized dough balls and flatten in your palm. Place ONE frozen Nutella ball and place into the middle of each dough ball. (Work with one frozen Nutella ball at a time and keep the rest in the freezer so they stay frozen)
Add another ONE tablespoon of cookie dough on top and press the sides together and wrap dough around and roll into balls.
Place on prepared cookie sheet. Repeat until all the dough is used up. Chill entire baking sheet in the fridge for at least 30 minutes.
Preheat oven to 350 degrees Fahrenheit.
Bake cookies for 14-15 minutes until bottoms are just slightly brown - rotating pans halfway through. Be careful not to over bake.
Remove from oven and cool on baking pan for about 2 minutes until you can handle them comfortably with your hands.
Meanwhile, sift 1/3 cup powdered sugar into a medium bowl. While cookies are still warm, roll them in powdered sugar. Place cookies on a cooling rack, once they have cooled completely, roll them in powdered sugar again.
Store cookies in an airtight container for up to 3 days or freeze for up to one month.