The dynamics of Li+ dipoles distributed in the quantum paraelectric matrix of potassium tantalate is investigated via linear and nonlinear dielectric response. It is found that the highly diluted solid solution K0.995Li0.005TaO3, KLT(005), reveals nearly ideal Debye-type dipolar relaxation with conventional frequency dispersion at intermediate temperatures, 30<T<60 K. At lower temperatures a drastic increase in the linear dielectric susceptibility is measured as predicted by computer simulations Su et al. [J. Appl. Phys. 90, 6345 (2001)]. Being accompanied by a negative divergence of the third-order nonlinear susceptibility, a transition into a chiral glass state as T→Tg≈6 K is conjectured.