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1. Heat oven to 350 degree F. Spread nuts on jelly-roll pan and toast until skins crack, 10 to 12 minutes. Wrap in kitchen towel and rub vigorously to remove skins. Cool completely. Transfer to food processor and process until ground fine.
2. Reduce oven temperature to 300 degree F. Spray 8-cup fluted tube pan with vegetable cooking spray. Sift flour twice more. Combine 1/3 cup of the flour with ground nuts.
3. Beat egg whites, cream of tartar, and salt in large bowl on medium speed of an electric mixer to soft peaks. Add the 1-1/2 cups sugar, 2 tablespoons at a time, beating 1 minute after each addition. Gradually increase speed to high and beat 1 minute more. Gently fold in vanilla. Sift half of the remaining flour on top and gently fold into meringue. Repeat with remaining flour. Fold in nut mixture. Spoon into prepared pan.
4. Bake 1 to 1-1/4 hours or until just firm and dry to the touch. Invert onto wire rack and cool 1 hour. Remove pan and cool completely. Transfer to serving plate.Make Spun Caramel::
5. Combine the 1 cup sugar and the water in small saucepan. Cook without stirring over medium heat until sugar is amber colored. Cool until thin thread forms when dropped from fork, about 5 minutes.
6. With toothpick, dip each nut into caramel to coat. Dry on foil. Dip fork into caramel; holding fork about 18 inches above cake, carefully and quickly drizzle strands of caramel over cake. Arrange glazed hazelnuts around edge of cake. Serve within 4 hours. Makes 12 servings.