Cut baby carrots in half cross-wise.
In a saucepan, over medium heat, bring water, carrots, salt, and 1 tbsp. butter.
Bring to a boil and reduce heat to low.
Cover and simmer very lightly for 10 to 15 minutes, or until tender but firm; drain and set aside.
Return pan to the stove over medium heat and melt the remaining 2 tbsp. butter.
Cook shallots, in the melted butter, stirring occasionally, until translucent.
Add Marsala and sugar and stir continually until sugar is completely dissolved.
Continue simmering until sauce has thickened slightly.
Once thickened, toss carrots and hazelnuts with the sauce until well coated.
Garnish with parsley, if desired.
Serve immediately.
