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Al Netilas Yadayim:
When is the blessing recited? After awakening in the morning one is to wash his hands [near his bed] without a blessing, immediately proceed to use the bathroom, and [immediately] after leaving the bathroom he is to wash his hands a second time and recite the blessing of Al Netilas Yadayim.
Drying and raising the hands: The Chabad custom is to dry the hands, lift them separately to the height of his Peiyos [ears] and only then begin to say the blessing. This blessing is immediately followed by Asher Yatzar and Elokaiy Neshama as will be explained next.
For further details please view: Netilas Yadayim Shacharis