Crumble the yeast into the lukewarm milk, add one teaspoon of sugar and a little flour. Cover and let it rest in a warm place for about 10 minutes until foamy. TIP: If it doesn't foam, the milk was probably too cold or the yeast is old.
In a large bowl, combine the flour, remaining sugar, salt, vanilla sugar, and cinnamon. This spice blend gives the dough its character.
Add the proofed yeast, egg, and melted butter. Knead into a smooth, elastic dough. TIP: If the dough is sticky, don't add too much flour – instead, knead it further with slightly oiled hands.
Cover the dough and let it rise in a warm place for 45-60 minutes, until doubled in size. Meanwhile, toast the hazelnuts in a dry skillet to enhance their flavor.
On a lightly floured surface, roll out the risen dough into a rectangle. Sprinkle evenly with the toasted, roughly chopped hazelnuts.
Shape the stollen: fold it lengthwise in half, so that one side slightly overlaps the other. Gently press it down.
Place on a baking sheet lined with parchment paper, cover, and let it rest for 15 minutes. Preheat the oven to 350°F (180°C) (conventional heat).
Bake for 35-40 minutes, until golden brown. If the top browns too quickly, cover it with parchment paper.
Let it cool slightly, then dust with powdered sugar. TIP: If you brush it with melted butter while it's still warm, the powdered sugar will adhere better.
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