The spin dynamics of an arbitrary Localized impurity in an insulating two-d
imensional antiferromagnet, across the host transition from a paramagnet wi
th a spin gap to a Neel state, is described. The impurity spin susceptibili
ty has a Curie-like divergence at the quantum-critical coupling, but with a
universal effective spin that is neither an integer nor a half-odd integer
. In the Neel state, the transverse impurity susceptibility is a universal
number divided by the host spin stiffness (which determines the energy cost
to slow twists in the orientation of the Neel order). These and numerous o
ther results for the thermodynamics, Knight shift, and magnon damping have
important applications in experiments on Layered transition metal oxides.