Yes,

Escape character is '^]'.
* OK [CAPABILITY IMAP4rev1 SASL-IR LOGIN-REFERRALS ID ENABLE IDLE LITERAL+ 
AUTH=PLAIN AUTH=LOGIN]

> Yes, it works with other IMAP servers, why should not work with dovecot?
> It was working with DBMail, and it's working with an account from my Telco 
> that used cirus-imap.

Have you verified (with rawlogs or tcpdump) that outlook even attempts IDLE?
Is your dovecot advertising IDLE support in CAPABILITY? 

Sami

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