The Collaborative International Dictionary of English v.0.48:
Dally \Dal"ly\ (d[a^]l"l[y^]), v. i. [imp. & p. p. Dallied
(d[a^]l"l[i^]d); p. pr. & vb. n. Dallying.] [OE. dalien,
dailien; cf. Icel. pylja to talk, G. dallen, dalen, dahlen,
to trifle, talk nonsense, OSw. tule a droll or funny man; or
AS. dol foolish, E. dull.]
1. To waste time in effeminate or voluptuous pleasures, or in
idleness; to fool away time; to delay unnecessarily; to
tarry; to trifle.
We have trifled too long already; it is madness to
dally any longer. --Calamy.
We have put off God, and dallied with his grace.
2. To interchange caresses, especially with one of the
opposite sex; to use fondling; to wanton; to sport.
Not dallying with a brace of courtesans. --Shak.
Our aerie . . . dallies with the wind. --Shak.