Raspberry Linzer Thumbprint Cookies

Preheat oven to 350 degrees F. Place 1 cup hazelnuts in 9- by 9-inch metal baking pan. Bake 15 minutes or until toasted, shaking pan occasionally. Wrap hot hazelnuts in clean cloth towel. With hands, roll hazelnuts back and forth to remove most of skins. Cool completely. In food processor with knife blade attached, blend toasted hazelnuts with sugar until finely ground. Add margarine or butter, vanilla, and salt, and process until blended. Add flour and process until evenly mixed. Remove knife blade, and press dough together with hand. Finely chop remaining 1/3 cup hazelnuts; spread on piece of waxed paper. Roll dough into 1-inch balls (dough may be slightly crumbly), using about 2 teaspoons dough for each ball. Roll balls in nuts, gently pressing nuts onto dough. Place balls, about 1 1/2 inches apart, on ungreased large cookie sheet. With thumb, make small indentation in center of each ball. Fill each indentation with 1/4 teaspoon jam. Bake cookies 20 minutes or until lightly golden around edges. With pancake turner, remove cookies to wire rack to cool. Repeat with remaining balls and jam. Store cookies in tightly covered container.