Place raw hazelnuts on a baking sheet and bake at 350 degrees for about 8 minutes.  Remove from the oven and dump the hazelnuts into a clean kitchen towel.  Close the towel up and use the fabric to rub against the nuts and to rub the nuts together.  When you open the towel, you should see a lot of the papery skin has been removed.  Repeat a couple of times (with the same towel) until you don’t see anymore skin flaking off.