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.
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            We have trifled too long already; it is madness to
            dally any longer.                     --Calamy.
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            We have put off God, and dallied with his grace.
                                                  --Barrow.
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   2. To interchange caresses, especially with one of the
      opposite sex; to use fondling; to wanton; to sport.
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            Not dallying with a brace of courtesans. --Shak.
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            Our aerie . . . dallies with the wind. --Shak.
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