Prepare the dough: In a small bowl, combine warm milk, sugar, and yeast. Let sit for 5-10 minutes until foamy. In a large bowl, mix flour and salt. Add softened butter, egg, and yeast mixture. Stir until a dough forms. Knead on a floured surface for 5-7 minutes until smooth and elastic. Place in a greased bowl, cover, and let rise for 1-1.5 hours or until doubled in size.

1. Roll out the dough: Preheat oven to 350°F (175°C). Line a baking sheet with parchment paper. Once dough has risen, punch it down, transfer to a floured surface, and roll into a rectangle about 1/4-inch thick.
2. Add the Nutella filling: Spread Nutella evenly on the dough, leaving a small border. Cut dough into 1-1.5 inch wide strips.
3. Form the knots: Tie each dough strip into a knot and tuck the ends underneath. Place on the prepared baking sheet about 1 inch apart.
4. Bake the knots: Brush the knots with melted butter for a golden finish. Bake for 15-20 minutes, or until golden brown and cooked through.
5. Serve and enjoy: Let the knots cool slightly before serving. For extra indulgence, dust with powdered sugar or drizzle more Nutella on top.