In saucepan combine milk, cream and 1/2 cup sugar over medium heat. Cook until the sugar dissolves, about 5 minutes. In medium bowl whip the egg tools with the remaining sugar, 1/4 cup, until eggs have become thick and pale yellow. Add this mixture into saucepan. Cook over very low heat, stirring constantly until the mixture becomes thick enough to coat the back of a wooden spoon, about 7-10 minutes. Pour the warm custard thru a strainer over a medium size bowl. Stir in Nutella and vanilla extract. Chill mixture completely before pouring into your ice cream maker. Follow manufactures instructions to freeze. Enjoy!