The Collaborative International Dictionary of English v.0.48:

Espy \Es*py"\, v. t. [imp. & p. p. Espied; p. pr. & vb. n.
   Espying.] [OF. espier, F. ['e]pier, from OHG. speh?n to
   watch, spy, G. sp[aum]hen; akin to L. specere to look,
   species sight, shape, appearance, kind. See Spice, Spy,
   and cf. Espionage.]
   1. To catch sight of; to perceive with the eyes; to discover,
      as a distant object partly concealed, or not obvious to
      notice; to see at a glance; to discern unexpectedly; to
      spy; as, to espy land; to espy a man in a crowd.
      [1913 Webster]

            As one of them opened his sack to give his ass
            provender in the inn, . . . he espied his money.
                                                  --Gen. xlii.
                                                  27.
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            A goodly vessel did I then espy
            Come like a giant from a haven broad. --Wordsworth.
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   2. To inspect narrowly; to examine and keep watch upon; to
      watch; to observe.
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            He sends angels to espy us in all our ways. --Jer.
                                                  Taylor.

   Syn: To discern; discover; detect; descry; spy.
        [1913 Webster]