Dissolve yeast in 1/4 cup water. Let stand for 10 minutes.
Mix together flour, sugar, salt, remaining water, and yeast mixture. Using a dough hook, knead dough for 7 minutes.
Place dough in oiled bowl. Cover with plastic wrap and allow to rise for 1 hour or until doubled in size.
Turn onto floured surface and roll into 12″ by 15″ rectangle.
Heat Nutella in microwave long enough to soften. Spread Nutella onto dough.
Roll dough lengthwise and place on greased and floured baking sheet. Cut dough down the center leaving 1″ intact on one side. Twist dough together with cut end on top of each twist.
Cover dough with plastic wrap and allow to rise for 20 minutes.
Bake for 20 minutes at 350°