Combine milk, cream, and 1/2 cup sugar in a saucepan over medium heat.

Stir until the sugar dissolves, approximately 5 minutes.

In a medium bowl, whisk the egg yolks with the remaining sugar until thick and a pale yellow color.

Use an electric mixer for best results.

Slowly pour the hot cream mixture into the egg yolks, whisking constantly to prevent cooking the eggs.

Return the mixture to the saucepan.

Cook over low heat, stirring often, until the mixture thickens and coats the back of a spoon.

This usually takes about 5 minutes.

Remove from heat and add vanilla extract and Nutella.

Stir until completely combined and smooth.

Transfer the mixture to a bowl and chill in the refrigerator for at least 2 hours.

Once chilled, churn the mixture in an ice cream machine according to the manufacturer's instructions.