So, my question is this: If I Outwit your TK, and you Outwit my Outwit, do you get TK back?

If that's the case, if you Perplex your Defense, and I Outwit your Perplex, does your Defense go back to what it was before?

What is the deal with Outwit?

Yes, if you counter Outwit, then its effects end and TK returns.

Cool. What about the second scenario (you probably answered this, but asking for clarification)

Yes and yes.

Outwit makes a character lose the power until your next turn. It is as if the character didn't possess that power or ability in the first place. And any ongoing effect will end immediatly unless a game effect specifically says otherwise.

In short, yes .

Outwit not only counters a(n) power/ability, it removes game effects with a duration specified. Outwit has one if these elements and because of that, once you outwit my outwit, anything I've outwitted comes back post haste.

I'm not 100% sure, but I'd call it that way. If I'm wrong, please chime in and help us out

From the Core Rulebook:

If a power or ability is countered or lost, all game effects of that power or ability immediately end, but any actions already in progress are resolved normally.

Outwit counters the power and in so its effects would end.