Prepare the cake pan. Preheat the oven to 180°C (350°F). Grease the base and sides of a 22cm (8-inch) round cake pan or springform pan and line the base with a layer of parchment paper. Smear dollops of butter evenly over the base of the lined pan. Sprinkle with sugar.
Prepare the rhubarb. Trim rhubarb stalks to fit side by side, covering the base of the pan. Keep any remaining offcuts of rhubarb and slice into 1cm (0.5 inch) pieces. Set aside.
Cream butter, sugar, and orange zest. In the bowl of a stand mixer fitted with the paddle attachment, beat the butter, sugar, and blood orange zest on high until pale and fluffy, about 5 minutes.
Add in eggs. Add the vanilla extract and then the eggs, one at a time, and beat on medium to high until just combined. Scrape down the sides of the bowl after each addition.
Mix the dry ingredients together. In a separate medium bowl, add the dry ingredients: flour, ground hazelnuts, baking powder, and salt, and stir until combined.
Add all remaining ingredients. Add half of the flour to the batter and beat on low until just combined, then add the milk and chopped rhubarb and mix again. Lastly, add the remaining flour mixture and beat until a few streaks of flour remain.
Spoon into pan and bake. Spoon the cake batter over the rhubarb stalks on the bottom of the prepared pan and spread evenly with a spatula. Bake for 50-60 minutes or until a toothpick entered into the centre of the sponge comes out clean. Let the cake rest for 10 minutes. Gently run a thin-bladed knife around the edge of the pan and invert the cake onto a plate. Remove the parchment and cool completely.