Reb Chanoch Hendel Kugel lived in Lubavitch and was a “ben bayis” in the Rebbeim's home for close to forty years. The Frierdiker Rebbe describes him as follows, "Reb Chanoch Hendel came to Lubavitch, to the Tzemach Tzeddek, for the first time in the year תר"ג. He had prepared himself for ten years before coming to the Rebbe. His heart burned with a fire of ahavas yisroel and he had unparalleled midos tovos. His ahavas yisroel and midos tovos were a product of much work and toil, and not so much from thinking and meditation. It is impossible to describe the love he had for another Yid; he would literally go on mesirus nefesh for every individual.” When the yeshiva Tomchei Temimim opened, he was appointed by Rebbe Rashab as the leading mashpia. He passed away on the 19th of Teves, תר"ס (1900).
When the news came to Lubavitch that the chossid Reb Chonye Marozov was released from his draft service, Reb Hendel began dancing in the yard of the Rebbe, chanting “Chonye has gone out!” He went into the Rebbe Rashab’s room, told him the news and started dancing in the room. The Rebbe Rashab got up, put his hand on Reb hendel's shoulder and went around with him three times. Afterwards, he said, "For this, I will say Chassidus for you.”
(לקוטי דיבורים ח"א ליקוט ב' אות י"ח)
Before he became a chossid, Reb Hendel went to the chossid Reb Zishke of Kurenitz to watch the way he conducts himself. He saw that throughout the entire day, Reb Zishke was occupied with his Rabbonus, and had no time to learn himself. Once, at a late hour of the night, when Reb Hendel was preparing to go to sleep, he saw Reb Zishke get up for Tikun Chatzos and then watched as he sat and learned for a few hours. The Rov then went to the mikva and started preparing for davening. Seeing this, Reb Hendel was impressed, but he began doubting his desire to become a chossid, perhaps it would be too difficult.
Later, he saw a woman come to Reb Zishke, telling him about a very seriously ill person, and as she was speaking, he saw tears streaming down Reb Zishka’s face. Sometime afterward, he witnessed the Rov going out of his way to request a favor for another yid.
Finally, Reb Hendel decided to become a chossid, and he went to Reb Zishka to tell him his decision. “Good,” said Reb Zishke. Reb Hendel asked, "But how do I do this? Please don’t make it too hard!” "It’s very simple," said the Rov. "The very first thing in Chassidus is ahavas yisrael." He explained the idea of true ahavas yisrael, and then said, "You are also a Yid and you must love yourself, but first you must banish the “goy” that is within you..."
(ספר השיחות תרצ"ז ע' 16)