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choosing a micro-controller for Ethernet connectivity

Other Parts Discussed in Thread: TIDM-CONNECTED-ETHERNET

Hi,

I want to design a very simple board that turns an LED on/off on the network. I am a good analog designer but I have not designed anything that works on the network so please excuse my ignorance. 

I think I need, RJ45 connector => magnet => Ethernet controller => Micro-controller with GPIO. 

I want to do it as cheep as possible. Which Micro is the best for my application? Basically, which features are required for a micro to do the job? I mean should they have Ethernet PHY, TCP/IP stack etc? Is there any micro controller that has built in ethernet controller as well?

I was looking for a reference design or application note but I could not find any. can anyone recommend me one please?

Thanks,

-Alex

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