During IPCP phase of PPP negotiations, dialin server can send ip address of Primary and Secondary DNS server to dialin clients, DUN. Once the DNS ip addresses are assigned/negotiated by dialin client, it will send all the querries to thise DNS servers.
You need to configure DNS servers ip addresses using following global command
async-bootp dns-server 172.16.224.100 172.16.224.101
Where .100 is primary and 101 is secondary DNS servers. You can visit fillowing link for more on sample config and troubleshooting
http://www.cisco.com/en/US/partner/tech/tk801/tk36/technologies_configuration_example09186a00800f66b9.shtml